Bangladesh may benefit from US-China trade war
While the ongoing trade war between the US and China, the world's two biggest economies, has set off alarm bells, Bangladesh may end up as a beneficiary if it can play its cards perfectly. Bangladesh is becoming a more popular apparel sourcing destination for western retailers thanks to the ongoing US-China trade war. As American buyers expect Chinese apparel exports to be subjected to tariffs, many American fashion companies are being forced to look for alternative supply sources beyond China—creating huge opportunities for Bangladeshi apparel exporters. A number of companies working in the cost-sensitive textile sector have already expressed their willingness to expand their sourcing from China to other Asian manufacturing hubs like Bangladesh.
This trade war has given an opportunity to competitors like India, Bangladesh, Vietnam, Cambodia, and Pakistan to pick up their respective shares in the US market. The fact that Bangladesh offers the most competitive price, followed by Vietnam, ought to be highlighted.
But other sectors, such as jute and leather goods, are yet to see an uptick in fortune. Our government should come up with a strategy to compete with other neighbouring countries to take advantage of this golden opportunity in order to expand export of garments, jute and leather goods.
Zubair Khaled Huq
By email
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